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Kallisto announces spudding of first Crossfield Viking well and closing ofCrossfield property acquisition

CALGARY, Aug. 9 /CNW/ - Kallisto Energy Corp. (TSX Venture: KEC) ("Kallisto" or the "Company") is pleased to announce that it has spudded its first Crossfield, Alberta well. The well is a planned horizontal well targeting the Viking formation and is expected to be completed with multi-stage fracture stimulations. This well is offsetting a vertical well which was completed in the Viking zone and produced approximately 13,700 barrels of light sweet oil with very low gas and water production. Kallisto has a 50% interest in the well, the first of a planned 5 well Crossfield Viking drilling program in which the Company will participate during 2010.

The Company also announces that it has acquired an additional 20% working interest in approximately six sections, the original acquisition of which was announced July 26, 2010, bringing its interest in the block to 65%. These lands are on the same trend as lands previously acquired by the Company at Crossfield and which are considered to be prospective for development of Viking oil wells utilizing horizontal drilling and multi-stage fracture stimulation completions. Following this acquisition, Kallisto owns approximately 24.8 net sections at Crossfield that are considered prospective for Viking oil development.

Kallisto is a Calgary-based junior resource company engaged in the exploration, development and production of oil and natural gas in Alberta.

This press release contains forward-looking statements which include, but are not limited to, operations plans and outlook, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct. Results of the Company may be affected by a variety of variables and risks associated with oil and gas drilling, production and transportation, loss of market, volatility of oil and gas prices, imprecision of reserve estimates, environmental risks, competition from other producers. As a consequence, actual results could differ materially from those anticipated or implied in the forward-looking statements. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement and are made as of the date of this news release. Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, event, results or circumstances or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.